Automotive Retail Industry Disrupted by Cyberattack

With Advance Auto Parts having also recently been the victim of a data breach, the problem points to the importance of securing cloud-based services.

Auto dealers across the nation have been targeted by a cyberattack, leading to software outages that will pose problems for the industry, reports Reuters.

The attack first hit dealerships last week after a group of hackers targeted a dealer management system from car industry technology provider CDK. With the system being in use by over 15,000 auto retail locations, JPMorgan analysts described the outage as tossing the industry into a mess of disorganization.

CDK’s management system is used to complete deals, track store profitability, and monitor employee compensation. With Advance Auto Parts having also recently been the victim of a data breach, the problem is not unique to dealerships, and points to the importance of securing any cloud-based services automotive businesses may be using.

While sales of vehicles have not yet seen too much impact from the system outage, it’s made processing paperwork much more difficult. Citi analysts said last week the outage may result in decreased sales in late June.

CDK said yesterday it’s started repairing the damage that’s been done, though it may be several days before it’s safe to use the software again. In the meantime, a group of hackers who have claimed responsibility for the attack are demanding millions of dollars in ransom before they will desist.

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NOLN Staff Reporters

The NOLN staff reporters cover the quick maintenance industry every day, from top to bottom. For news inquiries, please contact [email protected].

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